Sign up to save your podcasts
Or
Share How Hiring the Wrong Person Eats Profits with Rocky Lalvani of Profit Comes First
Share to email
Share to Facebook
Share to X
Share to email
Share to Facebook
Share to X
Or
How Hiring the Wrong Person Eats Profits with Rocky Lalvani of Profit Comes First
We often hear data on how much bad hire costs you and your company. About 3x the person’s annual salary.
But how much did the interview process itself cost?
For a startup to make a hire, the company spends about 73 total hours interviewing. With the most significant cost being 30 hours of the production team's combined time. And this is assuming that 6 people make it through a full interview to get to the hire.
We have to ask ourselves, can we really afford to lose almost 4 days of productive activity to interview? Roughly $9,855 per role, not including candidate marketing or recruiting fees.
As a small business, the answer is NO!
Guest Bio:
Rocky Lalvani of Profit Comes First, serves as Chief Profitability Adviser for business owners. He teaches them how to ensure they get paid and make profit a priority! As a certified Profit First Professional he implements Mike Michalowicz's Profit First System.
Rocky started with nothing when his parents immigrated to the United States when he was two years old, and his parents were in their 40's. It was his parents' second time starting over in life as they moved here to experience the American dream.
In spite of a lot of struggles and his mom passing away when Rocky was 7, he has been able to achieve financial and life success. Rocky loves to share his journey and inspire others to achieve their dreams even faster.
Today we discuss:
- Why it is critical to understand what interviewing costs
Challenges today?
- Employees are the major cost for the business
- Employee should provide a return for the business
Why is this important to the company?
- Costs to the company hiring
- Reduces morale
Rick’s Nuggets
- Team time waste!
- People who meet the team must be positioned properly
How do we solve the problem?
- Mission values purpose
- This is the step most business owners skip!
- Not who you like
- Bad Hire- Employee does not provide any value
- Mistakes
- For every $1 in payroll returns x$ in gross profit
We change the accounting formula of Sales - Expenses = Profit to Sales - Profit = Expenses. This ensures Profit comes first! (PS. It's not about money at all costs, people come before money!)
Rick’s Nuggets
- Values - most important
- Each step is a decision
- Assign interview questions
Key Takeaways that the Audience can plug into their business today! (Value):
- Is mission vision purpose written down & do your employees know it?
Guest Links
- LinkedIn: https://www.linkedin.com/in/rocky-lalvani/
Host Links:
- LinkedIn: https://www.linkedin.com/in/rick-girard-07722/
Show Sponsor:
www.stridesearch.com
View all episodes
By Rick Girard
4.7
3838 ratings
We often hear data on how much bad hire costs you and your company. About 3x the person’s annual salary.
But how much did the interview process itself cost?
For a startup to make a hire, the company spends about 73 total hours interviewing. With the most significant cost being 30 hours of the production team's combined time. And this is assuming that 6 people make it through a full interview to get to the hire.
We have to ask ourselves, can we really afford to lose almost 4 days of productive activity to interview? Roughly $9,855 per role, not including candidate marketing or recruiting fees.
As a small business, the answer is NO!
Guest Bio:
Rocky Lalvani of Profit Comes First, serves as Chief Profitability Adviser for business owners. He teaches them how to ensure they get paid and make profit a priority! As a certified Profit First Professional he implements Mike Michalowicz's Profit First System.
Rocky started with nothing when his parents immigrated to the United States when he was two years old, and his parents were in their 40's. It was his parents' second time starting over in life as they moved here to experience the American dream.
In spite of a lot of struggles and his mom passing away when Rocky was 7, he has been able to achieve financial and life success. Rocky loves to share his journey and inspire others to achieve their dreams even faster.
Today we discuss:
- Why it is critical to understand what interviewing costs
Challenges today?
- Employees are the major cost for the business
- Employee should provide a return for the business
Why is this important to the company?
- Costs to the company hiring
- Reduces morale
Rick’s Nuggets
- Team time waste!
- People who meet the team must be positioned properly
How do we solve the problem?
- Mission values purpose
- This is the step most business owners skip!
- Not who you like
- Bad Hire- Employee does not provide any value
- Mistakes
- For every $1 in payroll returns x$ in gross profit
We change the accounting formula of Sales - Expenses = Profit to Sales - Profit = Expenses. This ensures Profit comes first! (PS. It's not about money at all costs, people come before money!)
Rick’s Nuggets
- Values - most important
- Each step is a decision
- Assign interview questions
Key Takeaways that the Audience can plug into their business today! (Value):
- Is mission vision purpose written down & do your employees know it?
Guest Links
- LinkedIn: https://www.linkedin.com/in/rocky-lalvani/
Host Links:
- LinkedIn: https://www.linkedin.com/in/rick-girard-07722/
Show Sponsor:
www.stridesearch.com